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Following is the transcript (English portion) of the remarks made by the Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, on the latest unemployment statistics at a media stand-up today (July 20):
The rise in the unemployment rate is narrowing and shows signs of tapering off in recent months. The seasonally adjusted unemployment rate increased slightly by 0.1 percentage point from 5.3% to 5.4% in April - June this year. This is mainly due to the influx of school leavers and graduates into the labour market. The underemployment rate remained unchanged at 2.3%.
Increases in the unemployment rate were mainly observed in the arts, entertainment and recreation sectors and wholesale trade sectors. But decreases were apparent in a number of major sectors including warehousing and support activities for transport sectors, financing and accommodation and food services sectors.
The unemployment situation of the construction sector has also seen signs of improvement. The latest figure stands at 11.8%. Specifically the unemployment rate of the decoration and maintenance sub-sector has fallen notably for two consecutive periods and the latest figure is 16.6%, down 2.1%. This shows that the Government's all-out efforts to speed up infrastructural projects and the launch of Operation Building Bright, and also accelerated minor works, are having a positive effect on the labour market. That's why this is helpful, to a very large extent, to decrease the unemployment for the construction sector.
Although the local business environment remains weak, the global economy seems to have stabilised recently. The relative stability of our external trade and domestic economic sectors in recent months as compared to that of early this year, coupled with the effect of the Government¡¦s various relief packages, have helped ease unemployment.
Looking ahead, given the current economic situation and the entry of fresh graduates and school leavers into the labour market in the coming months, the unemployment rate is expected to face upward pressure in the near term. We will continue to be vigilant and monitor the situation closely.
Meanwhile, the Internship Programme for University Graduates will kick off on August 1 and will create 4,000 internship places for our university graduates. I am sure this programme will help sooth employment for graduates and school-leavers as well.
Reporter: The unemployment rate has increased again. You just said that it will face further pressure despite the fact that the economy is picking up. So when do we expect the unemployment situation to catch up with the economy?
The Secretary for Labour and Welfare: It is early to say. But as I said before, we are not out of the woods yet. We are still locked in an economic recession. The economic indicators in recent months are improving. If we particularly look at, for example, a very typical sector, the construction sector which has been described as the worst hit sector, the situation is improving steadily over the last two months primarily because of the Government's efforts to boost infrastructural development, to speed up works programme and also to launch this massive Operation Building Bright, involving 2,000 building refurbishments. All these have had a definite positive effect on the labour market. Also if your look at the figures, even hotel business, food business, and in overall terms, transportation as well are improving. But of course, we are still talking about high unemployment. But they are not worsening. They are actually turning for the better. So it takes time.
Reporter: What is the impact on employment when fresh graduates enter the labour market and do we face other pressures as well?
The Secretary for Labour and Welfare: The entry into the labour market of fresh graduates is a yearly phenomenon. It is nothing new. It is a seasonal factor that we've factored in in our general assessment. But bearing in mind this year, despite the fact that jobs will be less compared with previous years, we have had various employment schemes in place. For example, catering for university graduates, we've got this Internship Programme which will come on stream on August 1, creating 4,000 places, 3,000 in Hong Kong and 1,000 on the Mainland. This will certainly have a very, very positive effect on the labour market, and help equip our university graduates. When the market revives, they can then take off. And also for sub-degree holders and below, Form Five school leavers and so on, and even Form Three school leavers, we've had the Youth Pre-employment Training Programme, and the Youth Work Experience and Training Scheme, again revamped, completely re-energised, ready to absorb 35,000 of them in the next two years. We have already got funding for $400 million secured in the Finance Committee. So we are ready for the entry into the labour force of the graduates and school leavers. We are well prepared for them.
(Please also refer to the Chinese portion of the transcript.)
Ends/Monday, July 20, 2009
Issued at HKT 19:17
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